In the first half of 2025 alone, more than 5 million new enforcement files were opened in Türkiye, bringing the total number of ongoing enforcement and bankruptcy cases to over 23 million, according to official data from the Ministry of Justice.
This sharp rise highlights a long-standing reality in Türkiye: more and more people and businesses are either unable or unwilling to pay their debts. But this is not just about financial struggles. It also reflects a deeper cultural and historical pattern.
Türkiye’s Enforcement Crisis: Not Just Economic, but Systemic
While rising inflation, interest rates, and post-pandemic tightening policies are clear triggers, Türkiye's growing debt crisis reveals a more serious problem: commercial trust is weak, and legal enforcement is often relied on as a first step, not a last resort.
Between 1 January and 15 April 2025, more than 891,000 new files were added to enforcement courts. Even though the government introduced a debt relief program in 2022 to erase small debts under 2,000 Turkish Lira, the number of new files has not gone down in a meaningful way.
In fact, the numbers have returned to pre-amnesty levels and even gone beyond them. Over 80 percent of all enforcement files are related to small debt claims that do not require a court case, known as ilamsız takip.
This shows how common it has become in Türkiye for people to delay payment until legal action is taken.
Hyperinflation in recent years, especially over the last decade, has encouraged many individuals in Türkiye to delay paying their debts by relying on the expectation that inflation would erode the real value of their obligations.
As the Turkish Lira steadily lost value against stronger currencies like the US dollar, this created a mindset where postponing repayment became a financially rational strategy.
However, with interest rates now reaching historically high levels and the government taking firm steps to address this behavior, it has become more important than ever to use well-structured contracts.
Selecting high interest rates within the maximum legal limits for commercial agreements and drafting contracts in foreign currencies are effective strategies to protect against inflation and reduce the risks associated with delayed payments.
A Cultural and Historical Perspective: Military Might Over Mercantile Tradition
To understand this pattern, we need to look back in history. Türkiye is a country that carries the legacy of the Ottoman Empire, a civilization known more for its military power than for strong trade practices.
In contrast, countries like the Netherlands, Britain, and later the United States built economies based on contracts, where trust and legal enforcement grew through commercial law. Türkiye, on the other hand, developed with a focus on authority and power rather than on private business responsibility.
Even today, many Turkish business owners believe they can resolve disputes through negotiation or social pressure, rather than upholding strict legal agreements.
Unfortunately, this means foreign investors are at greater risk when entering into business partnerships, loan agreements, or property deals without the protection of enforceable contracts and properly structured legal relationships.
Why Foreigners Must Be Legally Proactive in Türkiye
In many Western countries, breaking a contract usually leads to quick legal consequences. In Türkiye, however, some parties may ignore their responsibilities until a court forces them to act.
Even then, they might delay or try to work around the process. Without a clear and well-written contract, collecting what you are owed can become nearly impossible.
For that reason, at Bayraktar Attorneys, we advise all foreign individuals and companies to approach business in Türkiye with legally grounded caution:
Prepare strong bilingual contracts that comply with Turkish law
Include penalty clauses, guarantees, and secured debt mechanisms
Ensure contracts are notarized or timestamped where needed
In property transactions, add annotations at the land registry to secure investor rights
Conclusion:
While Türkiye continues to modernize and attract global investment, the cultural gap in commercial discipline and debt responsibility remains significant. Foreigners who come to Türkiye expecting European-style reliability in payments and enforcement often end up disappointed.
Do not leave things to chance. In a country where legal enforcement is often the only dependable solution, having strong legal protection is not a luxury. It is a necessity.
We at Bayraktar Attorneys offer proactive legal support to international clients doing business in Türkiye. Whether you’re loaning money, entering a joint venture, or acquiring property, our team ensures your interests are contractually protected and legally enforceable from day one.
